**Case 3**

**Figure 3.** Attendance of Case 3 for each criterion of Bonsucro, in percentage.

By burning the bagasse, the plant produces an average of 4500 kWh of energy. This is totally consumed in the company, not being sold.

The sugarcane planted area had 10,800 ha, of which 60% was a leased area and 40% was its own area. Sixteen percent of the total crushed cane comes from suppliers. The average planting radius at the plant is 27 km.

The sugarcane yield had productivity of 70 t/ha, lower than the state average, which was 75 t/ ha. In the harvest of 2011/2012, *Zona da Mata* mesoregion was affected by drought in 2012, a fact that justified the fall in sugarcane productivity. Regarding the total fermentable sugars, it obtained 145 kg ATR/t sugarcane, slightly above the Brazilian average, which was 135.6 kg ATR/t sugarcane.

Among the voluntary and mandatory certifications existing for the sector, the plant had only the agro-environmental protocol for the sugarcane-ethanol sector of Minas Gerais state, which is voluntary. This ethanol plant is located in a mountainous region, where 80% of the sugarcane plantation areas of this plant have a slope of more than 12%, so its harvest is 100% manual. Due to the lack of adequate equipment for sugarcane harvesting in areas with declivity above 12%, according to the agro-environment protocol, in projects implemented until 2007/2008, deadlines will be granted for proper adaptation, according to previous authorization of the State Council for Environmental Policy: COPAM.

Like other plants, environmental balance, rational exploitation, and respect for the environment are constant concerns of the company. As environmental practices, it adopts no-tillage, contour lines, water monitoring, and the collection and disposal of pesticide packaging. As social practices, it has partnerships with schools and universities in the region, and with the municipality, encouraging culture, leisure, and research.

In the analysis of compliance with the Bonsucro indicators, Case 4 also had a distinct behavior from the other three plants. As shown in **Figure 4**, the criteria that stood out because these were not met were suppliers' code of conduct requirement, economic incentive for employee training, research incentive, accounting for emissions of GHG, sale of carbon credit, and mechanization of the harvest until 2014.

#### *3.1.5. Comparison between cases*

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Research incentive Protection of land with

high biodiversity.

**Figure 3.** Attendance of Case 3 for each criterion of Bonsucro, in percentage.

Plan and implementation of mitigation measures.

Calculation of the GEG

Reduction of emissions and effluents.

Continuously improve the soil and water resources.

*3.1.4. Case 4*

40 Sugarcane - Technology and Research

domestic market.

Sale of carbon credits

Harvesting mechanization

observed among the cases studied, this plant is the smallest.

origin, the company's capital is also 100% national.

Compliance with laws and the right to use the land

**Case 3**

they were not attended were economic incentive for employee training, hours lost at work, research incentive, reduction in effluent emissions, transparency in the sugarcane expansion

Case 4 represents one of the oldest ethanol plants in the state, which began its activities in 1920. Located in the mesoregion of *Zona da Mata*, today it is the only survivor in the region of successive crises that the sugar and ethanol industry passed in the last century. Of family

The area of activity of the plant covers 13 municipalities of the mesoregion, which shows the importance of it with job creation and economic growth in the region. It has 1400 permanent

The plant produces crystal sugar, hydrated ethanol, anhydrous ethanol, and molasses, and in order of relevance to the company's revenue, sugar is the one that contributes most, followed by ethanol. As for the distribution of these products in the market, 100% is directed to the

In the harvest of 2012/2013, 650,000 tons of sugarcane were crushed, producing one million bags of 50 kg of crystal sugar and 18,000 m3 of ethanol. Comparing with the state production, sugar corresponded to 1.46% of the total and ethanol corresponded to 0.9%. As can be

employees and 1000 temporary works, differing from the other cases analyzed.

process, GHG emission accounting, and sale of carbon credits (**Figure 3**).

Compliance with ILO labour conventions.

> Require codes of conduct for suppliers

> > Provide a safe and healthy working environment.

Provide clear, equitable and comprehensive contracts.

Working hours lost as % of total hours worked.

Economic incentive for employee training

The comparisons were done for each environmental and social dimension presented on Bonsucro and European Renewable Energy Directive. Also, the economic dimension, which is not treated on both certifications, was also assessed and compared between cases.

The first principle of the social dimension in Bonsucro, refers to compliance with the law, and the four ethanol plants affirm to attend completely. In the second principle, which refers to respect human and labor rights, there were some differences concerning their attendance, but all of them had an acceptable level of compliance for the criteria: noninterference of power plants in workers' representation groups; compliance of sugarcane suppliers with labor laws; the use and control of personal protective equipment; and firstaid care.

The mills were also questioned about the company's profitability increase. According to Ref. [37], from the point of view of owners/shareholders, the most relevant financial measure is profitability, since it reveals the profits obtained by management efforts from the capital invested by the owners. Thus, profitability is the expected return on invested capital. All plants, except Case 4, have increased profitability in the last 3 years, and only Case 1 reported

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The debt ratio was also used as a financial indicator. This rate measures how much the company is indebted to its creditors, which means the higher this index, the greater the degree of use of third-party capital. Indebtedness indices will more comprehensively visualize the company's financial situation [38]. Cases 1, 2, and 4 had an increase in this rate between 2012 and 2013, being 2.13, 20, and 20%, respectively. Case 1 has the lowest rate, and therefore, it can be concluded that it is the least indebted among respondents. Case 3 did not answer that

Among the mills studied, three of them showed an increase in revenues, profitability, and indebtedness rate between 2011 and 2013. It is noteworthy that the mills have used more third-party capital, as well as invested more on their business, and these investments have brought returns to companies. The economic dimension does not have indicators established in Bonsucro or in Directive 28/2009 of the European Union; therefore, the conclusion was based on the interpretation of the data shown here. It can be noticed that there was, in general, economic development in cases 1, 2, and 3 plants studied, but the fourth has been stable in

From 2012 to 2017, the number of plants certified by Bonsucro in sustainability criteria has increased from 28 to 61 mills [3]. In 2012, there were 26 Brazilian companies certified, and in 2017, this number increased to 43. In Ref. [15], the same behavior was observed in the centersouth region, including plants from Minas Gerais state. These scenarios show the commitment of the Brazilian sugarcane industry to incorporate the best social and environmental

The audited area of sugarcane planted advanced from 574,000 ha (or 6% of the total area of sugarcane plantation in Brazil), in 2012, to approximately 910,000 ha of sugarcane in 2017,

The following plants were certified by Bonsucro until 2012: Adecoagro (Angelica; Monte Alegre); Alta Mogiana (Alta Mogiana); Biosev Bioenergy (Sta Elisa); BP Biofuels (Tropical Bioenergy); Bunge (Moema, Frutal, Itapagipe and Guariroba); Copersucar (Açucareira São Manoel, Santa Adélia, Quatá Zilor, Barra Grande of Lençóis Zilor, São José Zilor or Açucareira Zilo Lorenzeti Zilor; Odebrecht Agroindustrial (Conquista, Alcidia and Rio Claro); Raízen (Maracaí, Bom Retiro, Costa Pinto, Jataí, Bonfim, Gasa); Renuka (Equipav); São Martinho Group (Iracema); USJ (São João Araras); after 2012, they were certified: Raízen (Diamond, Destivale, Dois Córregos, Junqueira, Serra, Araraquara, Paraguaçu, Univalem); Copersucar (Santo Antonio Balbo, Uberaba Balbo and São Luiz); Guarani (Industrial Severina, Cruz High

**3.2. The current situation of sugarcane-ethanol plants, in Brazil**

practices into its agricultural and industrial processes.

representing 9.3% of the total harvested area.

this increase, which was 0.09% a year.

question.

recent years.

**Figure 4.** Attendance of Case 4 for each criterion of Bonsucro, in percentage.

The differences to be highlighted are the money set aside by mills to invest in employee training and research, which ranges from critical to acceptable; the percentage of hours lost at work; and the requirement of sugar mills to suppliers of codes of conduct, ranging from critical to ideal.

The similarities observed in all four cases, to the environmental dimension, refer to the areas of planting and expansion of sugarcane, which are not areas of high conservation value; the treatment and reuse of waste; the existence and implementation of an environmental management plan; the amount of water captured by industry and agriculture; and finally the practice of no-till. For all those criteria, the attendance ranged from acceptable to ideal. Another observation is that the mills presented better compliance on activities related to biodiversity and ecosystem service management, and the criteria related to Directive 28/2009 of the European Union had more variation, ranging the attendance from critical to ideal.

Other differences found are about the mechanization of sugarcane cultivation, both harvesting and planting, and the sale of carbon credits. It was verified that the plants exploit very little the carbon market and should invest more in the same, since besides the economic reimbursements they also have the environmental benefits, on which the participants of this market are certified by the reduction of greenhouse gas emissions.

About the economic dimension, some financial indicators were used to present the situation of the ethanol plants studied. Case 2 is the one that had the highest growth on revenues (25%), between 2011 and 2013, compared to the others. Case 4 did not present any increase.

The mills were also questioned about the company's profitability increase. According to Ref. [37], from the point of view of owners/shareholders, the most relevant financial measure is profitability, since it reveals the profits obtained by management efforts from the capital invested by the owners. Thus, profitability is the expected return on invested capital. All plants, except Case 4, have increased profitability in the last 3 years, and only Case 1 reported this increase, which was 0.09% a year.

The debt ratio was also used as a financial indicator. This rate measures how much the company is indebted to its creditors, which means the higher this index, the greater the degree of use of third-party capital. Indebtedness indices will more comprehensively visualize the company's financial situation [38]. Cases 1, 2, and 4 had an increase in this rate between 2012 and 2013, being 2.13, 20, and 20%, respectively. Case 1 has the lowest rate, and therefore, it can be concluded that it is the least indebted among respondents. Case 3 did not answer that question.

Among the mills studied, three of them showed an increase in revenues, profitability, and indebtedness rate between 2011 and 2013. It is noteworthy that the mills have used more third-party capital, as well as invested more on their business, and these investments have brought returns to companies. The economic dimension does not have indicators established in Bonsucro or in Directive 28/2009 of the European Union; therefore, the conclusion was based on the interpretation of the data shown here. It can be noticed that there was, in general, economic development in cases 1, 2, and 3 plants studied, but the fourth has been stable in recent years.

### **3.2. The current situation of sugarcane-ethanol plants, in Brazil**

The differences to be highlighted are the money set aside by mills to invest in employee training and research, which ranges from critical to acceptable; the percentage of hours lost at work; and the requirement of sugar mills to suppliers of codes of conduct, ranging from criti-

 Protection of land with high biodiversity.

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Compliance with laws and the right to use the land

**Case 4**

Compliance with ILO labour conventions.

Research incentive

Require codes of conduct for suppliers

Economic incentive for employee training

Provide a safe and healthy working environment.

Provide clear, equitable and comprehensive contracts.

Working hours lost as % of total hours worked.

The similarities observed in all four cases, to the environmental dimension, refer to the areas of planting and expansion of sugarcane, which are not areas of high conservation value; the treatment and reuse of waste; the existence and implementation of an environmental management plan; the amount of water captured by industry and agriculture; and finally the practice of no-till. For all those criteria, the attendance ranged from acceptable to ideal. Another observation is that the mills presented better compliance on activities related to biodiversity and ecosystem service management, and the criteria related to Directive 28/2009 of the European

Other differences found are about the mechanization of sugarcane cultivation, both harvesting and planting, and the sale of carbon credits. It was verified that the plants exploit very little the carbon market and should invest more in the same, since besides the economic reimbursements they also have the environmental benefits, on which the participants of this mar-

About the economic dimension, some financial indicators were used to present the situation of the ethanol plants studied. Case 2 is the one that had the highest growth on revenues (25%),

between 2011 and 2013, compared to the others. Case 4 did not present any increase.

Union had more variation, ranging the attendance from critical to ideal.

ket are certified by the reduction of greenhouse gas emissions.

Plan and implementation of mitigation measures.

**Figure 4.** Attendance of Case 4 for each criterion of Bonsucro, in percentage.

Calculation of the GEG

Sale of carbon credits

Harvesting mechanization

Reduction of emissions and effluents.

Transparency in the sugarcane expansion

Continuously improve the soil and water resources.

42 Sugarcane - Technology and Research

cal to ideal.

From 2012 to 2017, the number of plants certified by Bonsucro in sustainability criteria has increased from 28 to 61 mills [3]. In 2012, there were 26 Brazilian companies certified, and in 2017, this number increased to 43. In Ref. [15], the same behavior was observed in the centersouth region, including plants from Minas Gerais state. These scenarios show the commitment of the Brazilian sugarcane industry to incorporate the best social and environmental practices into its agricultural and industrial processes.

The audited area of sugarcane planted advanced from 574,000 ha (or 6% of the total area of sugarcane plantation in Brazil), in 2012, to approximately 910,000 ha of sugarcane in 2017, representing 9.3% of the total harvested area.

The following plants were certified by Bonsucro until 2012: Adecoagro (Angelica; Monte Alegre); Alta Mogiana (Alta Mogiana); Biosev Bioenergy (Sta Elisa); BP Biofuels (Tropical Bioenergy); Bunge (Moema, Frutal, Itapagipe and Guariroba); Copersucar (Açucareira São Manoel, Santa Adélia, Quatá Zilor, Barra Grande of Lençóis Zilor, São José Zilor or Açucareira Zilo Lorenzeti Zilor; Odebrecht Agroindustrial (Conquista, Alcidia and Rio Claro); Raízen (Maracaí, Bom Retiro, Costa Pinto, Jataí, Bonfim, Gasa); Renuka (Equipav); São Martinho Group (Iracema); USJ (São João Araras); after 2012, they were certified: Raízen (Diamond, Destivale, Dois Córregos, Junqueira, Serra, Araraquara, Paraguaçu, Univalem); Copersucar (Santo Antonio Balbo, Uberaba Balbo and São Luiz); Guarani (Industrial Severina, Cruz High Industrial, Verte: Andrade Sugar and Alcohol); Odebrecht Agroindustrial (Morro Vermelho); Adecoagro (Ivinhema Valley); São Martinho Group (São Martinho and Santa Cruz); Alto Alegre (Junqueira); Companhia Mineira de Açúcar e Álcool (Vale do Tijuco); Serra Grande Group (Serra Grande); Nardini Agroindustrial (Nardini); Not having renewed: Adecoagro (Angelica;); Bunge (Guariroba); Odebrecht Agroindustrial (Alcidia); Raízen (Bom Retiro); Renuka (Equipav); São Martinho Group (Iracema);

Noncompliance is justified by the plants due to: (1) the constant changes in the legislations related to sustainability, which cause uncertainty and insecurity for mills and (2) the fact that these are not required by their customers. However, it can be concluded that the plants do not adopt a proactive stance, since they do not seek knowledge about norms and certifications

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It is important to make a critical analysis of the international regulations that have arisen in recent years in the market. Most of these are based on parameters that are suitable for producers in the countries that gave rise to these standards, making it difficult for producers in other countries to meet these standards, as present throughout the chapter, since each site has characteristics with respect to environment, society, and economy. With this, it is suggested that there is not only a concern with the sustainability, but rather a way for preventing developing

Despite this, there is still an effort on the part of the plants to comply with the legislation, being aware of their progress and the path that must be taken. As presented, there is a rush and pressure exacerbated by some international entities to meet all criteria and to be sustainable. However, the Brazilian society, its interests, and its criteria are not credited or

It is believed that sustainability in the sugarcane-ethanol sector should be sought by the plants, not only to meet criteria, but also to improve the sugarcane production system, since this effectively translates into opportunities, biodiversity, and economic gains. If this does not

However, if this translates into opportunities, the outputs indicated in this work to meet the sustainability criteria are to: (1) improve the training of employees in all work areas of the plant, explaining to them the importance of the theme, (2) facilitate the diffusion of information about sustainability, (3) organize technical team in the area near the plants to better implement the practices of sustainability, and (4) better control the techniques adopted by the suppliers of sugarcane and inputs, considering that not only the industry, but also the whole

Finally, the results obtained in this work indicate that the plants are adapting to the theme, but that several points, such as accounting for the emission of gases and the sale of carbon credits, must still be worked on to improve the situation of the same, regarding the obtaining of certifications. Although these do not seem attractive at the moment, compliance with national legislation is mandatory. It is noted that incorporating the vision of long-term sustainability within organizations is necessary for those who want to be sustainable, certified

We acknowledge the National Council for Scientific and Technological Development – CNPq

happen, the pace to pursue sustainability will continue to be slow and challenging.

related to the subject.

listened to.

and expand the market.

**Acknowledgements**

for their financial support.

countries from growing and expanding their markets.

sugarcane-ethanol chain must be involved in this process.

In addition to the progress made in relation to the Bonsucro certification, in 2017, the agroenvironmental protocol, cited and signed by all four cases, completed 10 years. This protocol was updated, and the main goals are still the end of sugarcane burning; the recovery of forests in springs and the protection of the preservation areas of other watercourses; and adoption of a series of management practices to guarantee sustainability in its production chain. By the year 2022, the plants expect to have completed the process of restoration of all these areas.

As general results for Brazil, we have that 97.5% of the sugarcane area of the State of São Paulo is mechanically harvested and the practice of burning is not applied. This means that since the beginning of the Protocol (2007), more than 9.27 million tonnes of CO<sup>2</sup> eq. and more than 56 million tonnes of atmospheric pollutants (carbon monoxide, particulate matter, and hydrocarbons) are not emitted to the atmosphere. The sugarcane-ethanol sector in the State of São Paulo accumulates an asset of 3747 harvesters (between own and outsourced), while in the 2007/2008 harvest, the total was 753. More than 200,000 ha of riparian areas and 8230 springs were protected and recovered; 60% of the signatory plants have forest restoration programs for their sugarcane suppliers; since 2010, the ethanol plants have reduced water consumption by 40% for industrial processing, due to reuse system.

In the last harvest (2016/2017), 131 mills and 25 associations of sugarcane suppliers received the Green Ethanol Certificate as a result of compliance with these actions. These signatories are responsible for approximately 95% of the sugarcane production in São Paulo and 47% of the national ethanol production [39].
